[00:00:06] Welcome to the John Lothian News daily Update podcast for May 22, 2024. I am your host, John Lothian. This podcast is brought to you by John Lothian News, the home of markets wiki and markets wiki Education. Thank you for joining us. Here are the hits and takes comments from today's GLN. The World Federation of Exchanges, or WFE, released new research cautioning against the indiscriminate adoption of technologies like DLT that drastically reduced settlement time at the expense of market quality. The study highlights that while such technologies may speed up settlement, they also lead to increased trading costs and price volatility. For instance, a 1 minute delay in settlement can raise transaction costs by 1.3% and price impact by 1.5%. Moreover, settlement latency can fluctuate significantly, resulting in up to a 3.9% increase in transaction costs and a 4.5% rise in price impact. The research underscores that such uncertainties make it harder for informed traders to execute strategies efficiently, ultimately impairing market pricing. The 2024 Women in Finance Asia Award winners are out, and it is an impressive list. Among the winners are rising star Yolanda Escher from Blackrock Rising star Michelle Hosea, Virtu Financial Rising star Carina Cam from Nasdaq Rising star Karen Leung from Liquidnet Excellence in exchanges Mina Kim from CME Group Excellence in Sustainability Chiani Hyung from BNP Paribas Excellence in hedge Fund Stella Jang from Citadel Excellence in Legal and Compliance Victoria Chen, DTCC Excellence in Regulation Z. Minyao from FIA Excellence in Risk Management Agnes Koh from SGX Excellence in Talent Management Alana Newman, CBO Australia Excellence in Talent Management Melanie Tan Merrick, Spectron Excellence in Sellside Trading Serene Kai, SGX Excellence in Trading platforms Indu Rajiv, Citadel Securities Excellence in ETF's carry neo Tradeweb Excellence in Marketing and Communications Angela Nian from BNP Paribas Excellence in Commodities Kelly Campbell from ICAP and finally, excellence in derivatives Jerine Chia from UBS. There are also others on the list. Look for a link in today's newsletter today I received a phishing LinkedIn message from a purported CME group recruiter who wrote that she had seen my profile on LinkedIn and you have a wealth of experience in your field. We are currently recruiting for senior management positions and if you're interested in learning more about our senior vacancies, please leave your phone number. We will arrange for a project leader to contact you.
[00:03:49] I could tell from the beginning this person was disconnected from reality in some way. In this case. It seemed like good old fashioned case of attempted phishing. I left them the number for the CME group. CME Group, in collaboration with the Dubai Mercantile Exchange or DME, is hosting the AIPAC Crude Oil Forum on June 6. The event features industry experts from Vortexa and trading technologies discussing trading solutions and insights into the crude oil market for 2024. The forum, held at NTUC center in Singapore, requires registration between 10:00 a.m. and 10:30 a.m. followed by presentations from 10:30 a.m. to 12:00 a.m. pm. Attendance is by invitation only and adheres to Chatham House rules. Registered via the provided link or contact eventsmegroup.com for inquiries. CFTC chairman Rostam Benham is scheduled to deliver the keynote address at the HCMC Public conference titled climate in the center of Economy 29th 2024. The event will take place at the Grand Hyatt Athens Hotel in Athens, Greece starting at 02:45 p.m. local time or 07:45 a.m. eastern time, USA.
[00:05:26] He is also slated to engage in a fireside chat at the CCP Annual General Meeting 2024 on May 29, 2024. The event will commence at 01:00 p.m. local time, Athens, or 06:00 a.m. eastern time and will be held at the Royal Olympic Athens Hotel in Athens, Greece. The London Metal Exchange celebrated mental Health Awareness week last week and turned the LME Ring green to show its support for good mental health in the workplace.
[00:06:07] It shared on LinkedIn. Does that mean all trades were winners? I know that would improve my mental health. David Klotz at Metro Trade has the first edition of its that's why we did that monthly newsletter out with the title choosing CME Group as our first market connection. Metro trade wants to share with its customer why it made the decisions it made, David Klotz shared as we are building a retail focused futures brokerage, we know our product offering has to resonate with active traders. Every day we face business decisions that may impact our future customers. As a part of the building process, I'll be sharing in these monthly posts the rationale behind those decisions. My goal in these posts is to show you some of the inner workings of the industry and how and why we put customers first in making these decisions along the way. If you want to comment, provide counterpoints or have questions, I encourage you to go for it. David Klotz will be substituting for me as editor of JLN the week of June 24 28th. While I am in Europe. After attending IDX the week before, Esma Auis has given her notice as editor of Options Discovery. We want to thank her for her great work. She is only 19 years old and was recruited by Alex Tang who was a very hard act to follow. Alex recruited Esma from the UIC boxing team where they both were members. Thank you Esma. Again, we are looking for a new editor for this video series aimed at teaching younger investors about the option market. We would prefer a student, someone who is a peer for the target audience of the group. Also, the OCC has shifted some of its sponsorship dollars from the options discovery to the JLN industry Leader video series we shot at the 2024 Options Industry Conference in Asheville, North Carolina. The OCC sponsorship was not exclusive in the first place, but we are looking for additional sponsor support for the Options Discovery series. Email
[email protected] if you are interested. Also, I am setting up interviews for IDX for June 18 and 19th. If you are interested, please email me.
[00:08:46] CCP Global published the 2023 CCP Global International default simulation, or SIDS exercise report last chance for runners to sign up for the futures for kids annual fun run for Thursday, May 23. The event, generously supported by RJ O'Brien, GH Financials and trading technologies, welcomes registrations via the link provided or on site at Queen Elizabeth Olympic park the story of pit trading set to Queen's Bohemian Rhapsody by Jeff Bennett there's a link in today's newsletter. Nicely done.
[00:09:31] Our most read stories from our previous edition of JLN options were Nvidia earnings could spark a $200 billion swing in shares. Options show from Reuters SEC contacted exchanges to update spot ether ETF applications report from Cointelegraph and ethereum price soars on spot ETF rumor how are ETH options markets positioned from coindraph? Subscribe to the free JLN Options newsletter with a link in today's JLN. It's free. Here are more stories from the first read section of today's JLN.
[00:10:15] Here's a sponsored content contribution from our friends at FTSE. Russell Russell 2000 Index Quarterly chart Book, May 2024 and Russell reconstitution the Russell 2000 index provides live index tracking data with historical performance dating back to January 1984. Academic and practitioner research confirms that large cap stocks behave differently to small cap stocks and performance is variable. There are sub periods during which the Russell 1000 outperforms the Russell 2000 and vice versa. Quarterly performance assessments provide valuable data points for understanding market sentiment and us economic activity. View the report with a link in today's newsletter also four decades of us indices reconstitution the Russell US indices are designed to reflect the ever changing us equity market, and the annual reconstitution process is critical to maintain accurate representation. The schedule for the annual reconstitution of the Russell US indices suite is set for Friday, June 28. The newly reconstituted indices will take effect after the market closes on the same day, Friday, June 28, 2024. For more information, please visit a link in today's newsletter and then here's a video from our Boca series Prometheum co CEO Aaron Kaplan discusses digital asset market structure at FIA conference Aaron Kaplan, co CEO and co founder of Prometheum, shared his insights on the evolving landscape of digital assets and the integration of blockchain technology into market infrastructure during an interview with John Lothian, news at the FIA International Futures conference in Boca Raton, Florida. This interview is part of the JLN industry Leader video series sponsored by Wedbush. You watch this video on johnlothiannews.com. heres a story from the New York Times. The headline see Gordon Bell, creator of a personal computer prototype, dies at 89. It cost 18 $18,000 when it was introduced in 1965, but it bridged the world between room sized mainframes and the modern desktop. C. Gordon Bell, a technology visionary whose computer designs for digital Equipment Corporation fueled the emergency of the mini computer industry in the 1960s, died on Friday at his home in Coronado, California. He was 89. The cause was pneumonia, his family said in a statement called the Frank Lloyd Wright of computers by Datamation magazine. Mister Bell was the master architect of the effort to create smaller, affordable, interactive computers that could be clustered into a network. A virtuoso at computer architecture, he built the first time sharing computer and championed efforts to build the Ethernet.
[00:13:39] He was among a handful of influential engineers whose design formed the vital bridge between the room sized models of the mainframes era and the advent of the personal computer. My comment we are losing giants from the computer revolution era.
[00:13:59] Here's another story, this one from Yahoo Finance. The headline trading stock all day and nights might be an inevitable for investors. The stock market's daily open and close may 1 day have little meaning if an idea gaining traction on Wall street becomes widespread. 24 X National Exchange, a trading platform backed by hedge fund founder Steve Cohen, is seeking SEC approval to operate an around the clock exchange. There's interest in the idea from bigger players, too. The New York Stock Exchange has reportedly polled market participants about interest in 24 hours access markets have traded around the clock for years. There is a reason I still don't sleep well. Here's another story, this one from Coinmarketcap. The headline SEC SEC license Prometheum launches custody service treating ETH as security Promethium, a digital asset trading and custody firm, has reportedly initiated a soft launch a soft launch of its Ethereum custody service, treating digital assets as securities. According to Fortune, the controversial custody solution was made available to a few selected companies on May 17. With a full scale launch scheduled for June, Prometheum plans to expand its service to retail clients later in 2024. In February, Prometheum announced plans to treat ether as a security when launching custodial services, a move that drew criticism from the crypto community. Aaron Kaplan explained that his approach allows for compliance with existing laws, stating it marks the first time that an investment contract digital asset security is being custodied and treated under the securities law.
[00:16:03] My comment they said they would do it and they're doing it. What's the problem? Here are the top three stories from Tuesday's JLN. Our top story Tuesday was the Wall Street Journal's FDIC chairman Martin Grunberg to resign following report detailing sexual harassment at agency. Second was Bloomberg's JP Morgan says every new hire will get training for AI and third was the Financial Times Ivan Boesky, convicted Trader, 1937 to 2024.
[00:16:40] Here are the top three stories from the lead section of today's JLN. The first is a press release from the SEC. The headline SEC charges intercontinental Exchange and nine affiliates, including the New York Stock Exchange exchange, with failing to inform the commission of a cyber intrusion.
[00:16:59] The securities and Exchange Commission announced that the Intercontinental Exchange Inc. ICE agreed to pay a $10 million penalty to settle charges that it caused the failure of nine wholly owned subsidiaries, including the New York Stock Exchange, to timely inform the SEC of a cyber intrusion as required by regulation, systems compliance and integrity regulation.
[00:17:32] Here's another story, this one from MarketWatch. The headline the crypto Congress momentum builds for most significant digital asset law in history crypto industry insiders are becoming more optimistic that new legislation that would sideline the US securely Securities and Exchange Commission will get strong bipartisan support in a vote this week and potentially even become law by the end of the year. The House of Representatives is expected to vote on the financial innovation and Technology for the 21st Century act on Wednesday, legislation that would clarify oversight boundaries of the crypto industry, granting the commodity Futures Trading Commission primary jurisdiction over the industry at the expense of the SEC.
[00:18:24] And then finally, here's another story, this one from the Financial Times Chinese sovereign bond trading suspended after frantic retail buying, small investors hunting for haven assets take advantage of easier access to special 30 year debt trading in Chinas much anticipated 40 billion rNMBI or 5.5 billion US dollar issue of special 30 year sovereign bonds was suspended twice on its market debut on Wednesday as exchanges warned of abnormal fluctuations and urged investors to be rational and pay attention to the risks. Beijing plans to sell a total of 1 trillion renminbi 20 to 50 year sovereign bonds this year to fund government spending in critical areas, such as a way of trying to spur growth. The first batch of bonds debuted on the Shanghai and Shenzhen stock exchanges rather than just over the counter at banks, giving chinese retail investors greater access than usual.
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[00:20:15] Have a great day and stay safe and treat people the same way you want to be treated, with respect, equality and justice. This has been. John Lothian Goodbye. This podcast has been produced by Andrew Lothian.
